SCENTRE GROUP (SCG)
Share Price Analysis and Chart

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26/08/2026

3

Neutral

$3.85

6.35%

On another peek, UBS sees Scentre Group's 1H26 result as not meeting market expectations with growth guidance only lifted 0.25% to a minimum of 4.25%.

The analyst believes the "modest" upgrade does not compute with the rise in comparable property revenue, the margin improvement on debt savings, albeit comparable net operating income growth was lower than revenue growth.

The residential pipeline has been raised to 25.6k dwellings with the monetisation of the projects not known yet.

Neutral rating retained with a lower target of $3.85 from $3.95. EPS forecasts largely unchanged.

First take: Scentre Group is rated Neutral with a $3.95 target. First-half funds from operations increased 4.4% to $612m, broadly matching consensus.

UBS notes comparable net operating income rose 4.4%, occupancy remained exceptionally high at 99.8% and leasing spreads reached 3.7%.

Tenant sales grew 4.2%, although growth moderated in July. Management upgraded FY26 funds-from-operations and distribution growth guidance to at least 4.25%, broadly consistent with existing market expectations.

The residential pipeline has expanded to 25,600 dwellings, while the development pipeline exceeds $4bn. Scentre's operating performance remains solid, commentary suggests, but consumer spending softness and valuation limit near-term upside.

FORECAST
UBS forecasts a full year FY26 dividend of 18.00 cents and EPS of 23.00 cents.
UBS forecasts a full year FY27 dividend of 18.00 cents and EPS of 24.00 cents.

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27/08/2026

3

Downgrade to Neutral from Overweight

$4.05

11.88%

Jarden updates its rating for Scentre Group to Neutral from Overweight with its target price increased to $4.05 from $4.00 following a first-half financial result of 11.73c that printed broadly in line with consensus expectations, supported by lower debt costs.

Operational performance benefited from net property income being partly offset by lower interest expenses and tax, while FY26 funds from operations and distribution guidance improved by 0.25% to 4.25%.

Commentary suggests the residential pipeline continues expanding towards 26k dwellings, though delivery models and funding structures remain unclear.

The analyst highlights that supportive drivers including a lack of retail supply, medium-term residential potential, and capital-partnering asset options justify the rating upgrade following recent share price underperformance.